Federal Reserve's Approval of Kraken Master Account Raises Concerns

Rep. Maxine Waters, chairwoman of the House Financial Services Committee, has sent a letter to the Federal Reserve Bank of Kansas City expressing her concerns over the approval process for Kraken's master account.

The limited purpose account granted to Kraken allows the crypto exchange to access payment services through the Fed system, but Waters is questioning whether this approval is on solid legal ground. In her letter, she notes that neither statute nor Federal Reserve guidelines refer to 'limited purpose accounts.'

Waters' concerns are not just about the approval process itself but also about potential consumer protection issues.